Making the Grade

Pot Stocks Ranked by Recent Earnings and Country

Earnings season is always my favorite time of year.

And it’s a holiday that comes around not once – but four times – a year.

But earnings announcements are not for the faint of heart.

Last week, cannabis investors were forced to try to drink from the firehose after a deluge of headlines. And to top it all off, more than a dozen pot stocks announced results.

There were moments to both cheer and jeer… and the cannabis sector staggered from one day to the next.

Because of the barrage of results investors were hit with, my team and I decided now would be the perfect opportunity to look at which pot stocks brought the most revenue in the quarter.

Pot Stock Earnings Broken Down

We decided to break this down by U.S. and Canadian stocks.

That’s to help illustrate the key differences in market share. This is probably one of the starker financial contrasts between the two industries.

Let’s start with the U.S.

Here are the top 10 American pot stocks ranked by their most recent quarterly revenue…

Right off the bat, we see it’s a pretty tight race.

Leading the pack is the Florida-focused multistate operator (MSO) Trulieve Cannabis Corp. (OTC: TCNNF) with $44.5 million.

That was a record for the company, as well as a 192% increase year over year.

Not far behind is the biotech GW Pharmaceuticals (Nasdaq: GWPH) at $39.2 million.

That was more than a tenfold increase from the $3.04 million the company reported a year ago!

And that was largely thanks to the $33.5 million in sales that Epidiolex brought in.

Next are the MSOs MedMen Enterprises (OTC: MMNFF) at $36.6 million and Curaleaf Holdings (OTC: CURLF) at $35.3 million. They’re followed by packaging company KushCo Holdings (OTC: KSHB) at $35.2 million.

In fact, the top six U.S. companies were closely packed together. They brought in more than $34 million apiece in the quarter.

And in the top 10, only one company – the MSO Harvest Health & Recreation (OTC: HRVSF) – had less than $20 million in revenue… and it barely missed at $19.2 million.

But it’s quite a different picture for our neighbor to the north…

In Canada, Canopy Growth Corp. (NYSE: CGC) was the runaway winner.

It brought in CA$83 million in revenue, a 283% increase year over year!

In second place, by a fairly wide margin, is Aurora Cannabis (NYSE: ACB) with a 305% increase in revenue to CA$65.1 million.

Then it’s a massive step down to OrganiGram Holdings (OTC: OGRMF) at CA$26.9 million and MediPharm Labs Corp. (OTC: MEDIF) at CA$22.0 million.

We can easily see this is a very unbalanced market. Two companies dominate.

And this is why we can believe the projections that, in just a few years, maybe half a dozen Canadian cannabis companies will remain.

Let’s put it this way: Canopy brought in more revenue than CannTrust Holdings (NYSE: CTST), National Access Cannabis Corp. (OTC: NACNF), TerrAscend Corp. (OTC: TRSSF), Sunniva (OTC: SNNVF) and Hexo Corp. (NYSE: HEXO) combined.

And none of those five reported quarterly revenue above CA$20 million.

This shows that the U.S. and Canadian markets have more differences than just federal level legalization.

And these two charts also demonstrate the two pieces of advice I’ve preached to investors:

  • Canopy Growth is my No. 1 Canadian pot stock to own.
  • I believe the U.S. marijuana market has far more opportunities and upside.

Until Next Time

For those who fear the volatility of earnings season, well, you’re in luck.

You’re offered a short reprieve for now… But just know that marijuana companies will start reporting again in the middle of June, with Canopy at center stage.

In the quarters ahead, we’ll see if any U.S. MSO or pot stock starts to break away from the pack.

Meanwhile, we’ll be watching to see if anyone can gain on Canopy and Aurora in Canada.

Here’s to high returns,

Matthew